Rumors of a Mercedes-Benz small car surfaced repeatedly over the years, and speculation intensified after a strangely proportioned compact Mercedes was spotted in 1981, drawing considerable press attention. According to the manufacturer, the vehicle was in fact a study for a particularly agile rally car rather than a production small car.
Technically, the prototype was based on the Mercedes-Benz 190, a model due to launch in November 1982. It was conceived with the possibility of competing under Walter Röhrl, the most successful German rally driver of his time, as a works entry. Mercedes-Benz ultimately decided against factory rally involvement, and the shortened 190, known as the "Kurz-190," was subsequently used only for testing drivetrain components rather than competition.